Annual Report2024
The North Star strategy:
HENSOLDT
is leading
the change
In an industry dominated by technology, a reactionary approach to change is insufficient for achieving success; instead, the ability to proactively encourage and shape developments is essential. Therefore, early on, we asked ourselves the following question: how can we position HENSOLDT so that we are not only prepared for future challenges, but can also actively shape the development of the industry? The answer was North Star. A long-term strategy that aims to establish long-term standards in the field of defence and security technology.
But what is this strategy all about and why is it essential for the future of HENSOLDT?
A point of focus
in uncertain times.
The name of the strategy was not chosen at random; for centuries, the North Star has been a way to find your bearings, even in turbulent times and through all the ups and downs – and that is exactly what the North Star strategy is intended to be for HENSOLDT. The strategy provides clear guidelines for dealing with an environment that is undergoing rapid change due to geopolitical tensions, technological upheaval and more.
The North Star strategy is based on four axes that bundle long-term goals into concrete strategic action areas and ensure that all parts of the company are on the same path.
Grow with Focus:
entering new markets
The first strategic axis, "Grow with Focus", is all about selectively expanding our international presence. By 2030, we aim to generate around half of our sales in Germany, 30 percent in Europe and 20 percent in strategically important international markets. These markets are defined regions that fit well with our strengths, thus enabling sustainable, profitable growth. To achieve this, we are setting clear priorities in business development, implementing focused key account management and improving the integration of sales and business development. By investing in regional structures and partnerships, HENSOLDT will tap into new markets and customer potential without neglecting the strengths of its domestic market.
Deliver at Scale:
industrialisation as
the key to success
However, growth alone is not enough. As demand for sophisticated defence technology grows, the ability to produce large quantities of excellent quality and deliver them quickly and reliably will be crucial. Conflicts are always decided on a large scale. This is where "Deliver at Scale" comes in. Key elements include expanding our production capacity, industrialising core products and optimising supply chains. At the same time, the internal organisation is being made more efficient, for example by introducing digital tools or improving the agility of engineering services. With these measures, HENSOLDT will increase its production and supply capabilities, ensure quality and on-time delivery, and guarantee a strong margin development in the long term.
Pioneer Software
Defined Defence:
a paradigm shift
in defence technology
a paradigm shift
Another important axis of the North Star strategy is "Pioneer Software-Defined Defence". Technological advances are already enabling networked, multi-domain operations and digital control of the battlefield, and mastery of these will be an enormous advantage in the future. This rapid transition to software-centricity is a true paradigm shift for the defence industry. HENSOLDT has unique capabilities in this area and is ideally positioned to play a key role in the development of Software-Defined Defence. It will enhance our service offering based on SaaS subscriptions and expand the portfolio of multi-domain solutions. This will enable HENSOLDT to expand its business model and create new revenue streams.
Lead our Team
into the Future:
a qualified team
as the key to success
a qualified team as the key to success
The foundation of any growth strategy and the beating heart of any business is its people. In order to position HENSOLDT as a preferred employer in the defence industry, we are promoting a culture of innovation and collaboration, offering specific training programmes and investing in a modern working environment under the auspices of the "Lead our Team into the Future" axis. These measures will ensure that HENSOLDT continues to have a highly skilled and motivated team capable of achieving these ambitious goals.
A strategic compass
for the future of HENSOLDT
In short, North Star will steer HENSOLDT purposefully into the future. The strategy will ensure continued, robust growth and further strengthen the company's market position as a leading provider of defence and security solutions. It brings together initiatives and investments and charts a course for robust growth, innovation, operational excellence and global reach. HENSOLDT will not only react to change, it will actively drive it.